Date: 11/17/97 10:11 AM
james davis
grapevine fire fighters assoc.
811 eagles way
springtown TX
76082
RE: File No. S7-25-97
Dear Chairman Levitt:
I am writing to voice my strenuous objection to the Securities and Exchange
Commission's proposed amendments to rules on shareholder proposals. If adopted,
these rules will destroy the rights of individual American shareholders like
myself.
Under the SEC's proposal, the ability of shareholders to address important
corporate governance issues at U.S. companies will be substantially curtailed.
Shareholder proposals that have received substantial support from shareholders
in the past -- requirements for independent board of directors, elimination of
entrenchment devices that insulate management from shareholders, proposals to
reign in excessive executive compensation, and proposals addressing important
social issues -- would be effectively eliminated if the SEC's proposal goes
forward.
Please use all your power to stop these rules from going forward. Small
shareholders are counting on you to protect our rights. Don't let these proposed
rules be another set of regulations from Washington that favor entrenched
management over individuals.
The process as it stands today is an important tool for protecting my financial
interests as a stockholder. It is also an important marketplace mechanism for
promoting corporate accountability and corporate responsibility.
I applaud the SEC for reversing its so-called Cracker Barrel decision, which
barred shareholder resolutions having anything to do with a company's workforce.
But the proposed rule renders the reversal meaningless by retaining and
strengthening anti-shareholder measures.
Mr. Levitt, don't take away my shareholder rights. Please leave a legacy of
upholding the rights of individual shareholders. Avoid a firestorm over this
issue. Stop the SEC's proposed rule on shareholder proposals from going forward.
Sincerely,
james b. davis
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